Does domain history matter?

Good/Bad history

[caran1]

A domain with backlinks or a major directory listing is considered valuable. Conversely, if the earlier owner had a controversial online business using the domain, is the new owner responsible in any way?

[maximillianos]

A domain name is just a leased piece of internet property. Your ownership of a domain does not tie you legally to the previous owner's business.

That said, search engines may remember a domain if it was banned, etc. Just because it changed owners hands, doesn't mean those bans/penalties will be lifted.

If you have a domain that is currently being penalized by search engines, the best you can do is make sure you new content is legit, and then write them explaning the situation and requesting a re-review. Both Yahoo and Google have such facilities to send in requests like this.

Hope this helps.

[caran1]

Thank you for your answer. Is this true of both expired domains and domains which are transferred by the owner.